This week we got our first look at what the grandfathering from the 25% BMR increase on June’s ballot would look like. Here’s the scoop:
1. If a project’s environmental application was submitted prior to 1/1/14, the inclusionary requirements are:
- 13% on site
- 25% offsite/in-lieu fee
2. If the environmental application was submitted prior to 1/1/15, the inclusionary requirements are:
- 13.5% onsite
- 27.5% offsite/in-lieu fee
3. If the environmental application was submitted prior to 1/12/16, the inclusionary requirements are:
- 14.5% onsite
- 30% off site/in-lieu fee
4. If the environmental application is submitted after 1/12/16, the project will need to fully comply with the ballot initiative at 25% affordable (assuming it passes), broken out between 15% at very low income (55% of AMI for rental, 80% AMI for sale) and 10% at moderate income (100% of AMI for rental, 120% AMI for sale).
5. Any project 120 feet or taller is not eligible for a grandfathered in-lieu fee and must pay a 33% fee.
6. The following types of projects are not eligible for any grandfathering:
- Projects located in the UMU zoning district that propose to remove existing industrial/PDR space;
- Projects located in the Mission Street NCT zoning district;
- Projects located in the Youth and Family Zone Special Use District.
Keep in mind that this is simply Supervisor Kim and Peskin’s proposed legislation. It still needs to be approved by six members of the Board of Supervisors and signed by the Mayor. We will keep you posted as the situation develops.
The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.